HAWTHORNE, N.Y.--(BUSINESS WIRE)--Feb 18, 2010 - Taro
Pharmaceutical Industries Ltd. (“Taro,” the
“Company,” Pink Sheets: TAROF) today announced that it
will discontinue manufacturing operations at the sterile
manufacturing facility of its Irish subsidiary, Taro
Pharmaceuticals Ireland Limited, in Roscrea, Ireland (“Taro
Ireland”). The discontinuance of manufacturing operations is
scheduled to take place by the end of March 2010. Taro Ireland
plans to continue to maintain the physical plant in good
condition.

While the discontinuance of manufacturing operations will impact
approximately 30 employees at the facility, Taro said it is no
longer in the best interests of the Company or its shareholders to
continue to incur losses at the facility or make the significant
capital investments that would be required to achieve the level of
operating efficiency found at Taro's other manufacturing
facilities. The discontinuance of operations, following both cash
and non-cash one-time expenses associated with the decision, is
expected to improve the Company's earnings and cash flow almost
immediately.

The Company has communicated its decision to the Taro Ireland
employees and has commenced consultations with the affected
employees. Taro believes that it has sufficient inventories of
sterile products to meet all existing commitments to its
customers.

About Taro

Taro Pharmaceutical Industries Ltd. is a multinational,
science-based pharmaceutical company, dedicated to meeting the
needs of its customers through the discovery, development,
manufacturing and marketing of the highest quality healthcare
products.

For further information on Taro Pharmaceutical Industries Ltd.,
please visit the Company's website at
www.taro.com.

SAFE HARBOR STATEMENT

Certain statements in this release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995.These statements include, but are not
limited to, statements that do not describe historical facts and
statements that refer or relate to events or circumstances that the
Company “believes,” “plans” or
“expects” to happen, or similar language.Although Taro believes the expectations reflected in such
forward-looking statements to be based on reasonable assumptions,
it can give no assurance that its expectations will be
attained.Taro believes this release should be read in
conjunction with all of its filings with the United States
Securities and Exchange Commission (“SEC”) and cautions
its readers that these forward-looking statements are subject to
certain events, risks, uncertainties, and other factors. Certain
factors that could cause or contribute to such differences include,
among other things, completion of the discontinuation of
manufacturing at the Company's sterile manufacturing facility in
Ireland (“Taro Ireland”), labor matters related to the
discontinuation of manufacturing at Taro Ireland, the impact of the
discontinuation of manufacturing at Taro Ireland on the Company's
financial results, the ability of Taro Ireland to meet all existing
customer commitments, the outcome of ongoing litigation with Sun
Pharmaceutical Industries Ltd., general domestic and international
economic conditions, industry and market conditions, changes in the
Company's financial position, litigation brought by any party in
any court in Israel, the United States, or any country in which
Taro operates, regulatory actions and legislative actions in the
countries in which Taro operates, and other risks detailed from
time to time in the Company's SEC reports, including its Annual
Reports on Form 20-F.Forward-looking statements speak only
as of the date they are made. Taro undertakes no obligation to
update, change or revise any forward-looking statements, whether as
a result of new information, additional or subsequent developments
or otherwise.